Re: Rectangular Trading Pattern for Intra-Day Purpose
Dear Sir,
Can I get this AFL?
RECTANGULAR PATTERN ON INTRADAY BASIS
This is the "heart" of my day trading. And I hope it will benefit all.
Tools Candlestick/Bar Chart (5 Minutes), MACD Oscillator with standard settings, Support and Resistance levels on 5 Minute chart
Trade Setup The basics of this setup is very easy to understand. All you need to do is monitor selective stocks (high beta high volume) or the Index. The pattern to look out is usually a horizontal range in which the particular entity trades and then gives a breakout in either direction. This pattern is extremely effective and has occurred nearly 70 times in the past 11 months on Nifty. On an average one can find at least 3-5 trading days in a month where this pattern forms. The average points to capture on one particular move are about 20-60. These figures on based on Nifty analysis. However, with 50 high beta futures stock, this pattern is bound to occur in many stocks on daily basis. Top 48 beta stocks exhibit this pattern atleast 1-2 times. So on different days you might get different stocks exhibiting this pattern.
Buy Setup A typical buy setup occurs when the entity breaks out on the upside after trading in a horizontal range for most of the day. Buy at the closing of the breakout candle and keep a stop loss at the low of the previous candle. MACD slope in this setup should largely be up. The risk reward ratio of this setup is extremely rewarding. Prior to the breakout ideally Nifty should have traded in the range of 25-35 points.
Sell Setup A typical sell setup occurs when the entity breaks out on the downside after trading in a horizontal range for most of the day. Short at the closing of the breakout candle and keep a stop loss at the high of the previous candle. MACD slope in this setup should largely be down. The risk reward ratio of this setup is extremely rewarding. Prior to the breakout ideally Nifty should have traded in the range of 25-35 points.
Important Notes Look at the slope of MACD when you enter the trade. Also, always take a note of where prices are trading with respect to their support and resistance.
Have patience and you will see this pattern occurring regularly.
I am posting two out of many examples I have for NIFTY alone. If you want to see this for individual stocks then let me know.
This is the "heart" of my day trading. And I hope it will benefit all.
Tools Candlestick/Bar Chart (5 Minutes), MACD Oscillator with standard settings, Support and Resistance levels on 5 Minute chart
Trade Setup The basics of this setup is very easy to understand. All you need to do is monitor selective stocks (high beta high volume) or the Index. The pattern to look out is usually a horizontal range in which the particular entity trades and then gives a breakout in either direction. This pattern is extremely effective and has occurred nearly 70 times in the past 11 months on Nifty. On an average one can find at least 3-5 trading days in a month where this pattern forms. The average points to capture on one particular move are about 20-60. These figures on based on Nifty analysis. However, with 50 high beta futures stock, this pattern is bound to occur in many stocks on daily basis. Top 48 beta stocks exhibit this pattern atleast 1-2 times. So on different days you might get different stocks exhibiting this pattern.
Buy Setup A typical buy setup occurs when the entity breaks out on the upside after trading in a horizontal range for most of the day. Buy at the closing of the breakout candle and keep a stop loss at the low of the previous candle. MACD slope in this setup should largely be up. The risk reward ratio of this setup is extremely rewarding. Prior to the breakout ideally Nifty should have traded in the range of 25-35 points.
Sell Setup A typical sell setup occurs when the entity breaks out on the downside after trading in a horizontal range for most of the day. Short at the closing of the breakout candle and keep a stop loss at the high of the previous candle. MACD slope in this setup should largely be down. The risk reward ratio of this setup is extremely rewarding. Prior to the breakout ideally Nifty should have traded in the range of 25-35 points.
Important Notes Look at the slope of MACD when you enter the trade. Also, always take a note of where prices are trading with respect to their support and resistance.
Have patience and you will see this pattern occurring regularly.
I am posting two out of many examples I have for NIFTY alone. If you want to see this for individual stocks then let me know.
Can I get this AFL?
